JPMorgan Chase Bank NA won a court decision to appoint a trustee to oversee a $1.55 billion Las Vegas-area development managed by affiliates of builders KB Home, Beazer Homes USA Inc. and Toll Brothers Inc.
KB and the other investors in South Edge LLC controlled the 2,000-acre Inspirada residential and commercial development in the Las Vegas suburb of Henderson. KB Home is the lead investor. JPMorgan filed an involuntary bankruptcy against South Edge in December, accusing the investors of mismanaging the project and trying to avoid to avoid liability for a $585 million loan.
U.S. Bankruptcy Judge Bruce A. Markell in Las Vegas on Thursday ordered the appointment of a trustee for South Edge.
• CLICK HERE to read the Bloomberg News story.
For reprint and licensing requests for this article, CLICK HERE.